An overly optimistic sales budget may result in
A) increases in selling prices late in the year.
B) insufficient inventories.
C) increased sales during the year.
D) excessive inventories.

Question

Quizplus · Accepted Answer

An overly optimistic sales budget may lead to excessive inventories as the company produces or orders more products than necessary to meet the unrealistically high sales targets. This can tie up funds in inventory and result in additional costs for storage and potential write-offs for unsold goods.

An Overly Optimistic Sales Budget May Result in